Dubai World creditors back company's debt deal

Dubai World, the indebted state-owned company at the centre of Dubai's massive debt pile, today said it had reached a deal "in principle" with a majority of its creditors on the company's $23.5 billion (£16.39 billion) restructuring plan.

The company said a co-ordinating committee representing about 60% of its lenders had signed off in broad terms to the proposal. Among those owed money are HSBC, Royal Bank of Scotland Group and Standard Chartered.

The deal still needs to win the backing of its other creditors.

Aidan Birkett, Dubai World's chief restructuring officer, said the company was happy to win what he said was the committee's "unanimous support in principle" for the plan.

"This is an important milestone and reflects our efforts to achieve the best possible solution for all stakeholders," he said.